the (un)changing nature of work: what to expect and...

32
The (Un)Changing Nature of Work: What to Expect and Implications Labor Market Policy and Programs November 7, 2019 Federica Saliola World Bank Social Protection and Jobs Group Jobs, Labor & Migration Course

Upload: others

Post on 31-May-2020

6 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

The (Un)Changing Nature of Work: What

to Expect and Implications

Labor Market Policy and Programs

November 7, 2019

Federica Saliola

World Bank – Social Protection and Jobs Group

Jobs, Labor & Migration Course

Page 2: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Technological progress can expand job opportunities

6 November 2019 2

Lost employment in old sectors

Remaining employment in old sectors

New employment in new sectors

Emp

loym

ent

in e

ach

sec

tor

Sectors (ordered by susceptibility to automation)

Innovation

Au

tom

atio

n

Page 3: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Wide variance in the perceived jobs at risk due to automation

6 November 2019 3

7% 6% 5% 5% 5%

2%

47%

55%56%

61%

40%41%

0%

10%

20%

30%

40%

50%

60%

70%

US Japan Lithuania Cyprus Ukraine Bolivia

Percentage of jobs at risk of automation

Page 4: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Informality persists in most emerging economies

6 November 2019 4

Turkey (and mean): 46

Pakistan (and mean): 68

Chad: 81

Paraguay: 71

Cote d'Ivoire: 91

Nepal: 98

Bulgaria: 19

Kosovo: 40

Ethiopia: 36 Brazil: 36

Kyrgyz Republic: 57

Togo: 63

Mexico: 57

Vietnam: 75

Senegal: 89

10

20

30

40

50

60

70

80

90

100

Upper middle income Lower middle income Low income

Info

rmal

Em

plo

yme

nt

(%)

Average 64.7

Two out of three workers in emerging economies are in the

informal economy

Page 5: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

What is Changing?

6 November 2019 5

Page 6: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Industrial jobs are falling in the west and rising in the east

6 November 2019 6

Source: Authors’ analyses based on World Bank’s World Development Indicators (dataset)

5

10

15

20

25

30

35

40

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Industry employment (% of employment)

Middle income High income Low income Rising East Asia Eastern Europe

Page 7: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Automation in industrial countries has

boosted imports from developing countries

6 November 2019 7

Page 8: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Globally, the number and trade share of new products

increased from 1996 to 2017

6 November 2019 8

Page 9: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Technological advances change production patterns and

accelerate the growth of firms

9

Source: Authors’ analyses based on Walmart Annual Reports, Statista.com, NetEase.com

Page 10: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Technology is changing how people work and the terms on which they work

6 November 2019 10

LESS standard long-term contract

MORE short-term work often via online work platforms

BUT the numbers are still small: total freelancer population is 84 million, or less than 3 percent of the global labor force

Taking GIG tasks Hiring GIG workers

Page 11: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

In many developing countries, the share of

employment in high-skill occupations has increased

Source: Authors’ analyses based on World Bank’s International Income Distribution Data Set (I2D2)

-2

-1.5

-1

-0.5

0

0.5

1

1.5

Bolivia South Africa Zambia Brazil Uganda Bangladesh Sri Lanka Armenia Ecuador Ethiopia Chile Jordan

Per

cen

tage

Po

ints

Annual average change in employment share by occupation skill levelcirca 2000–circa 2015

High-skill occupation Middle-skill occupation Low-skill occupation

High-skill and low-skill occupations grew,

but middle-skill fell

High-skill occupations grew, but

middle- and low-skill fell

High- and middle-skill occupations

grew, but low-skill fell

Page 12: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

But, advances in Technology Call for New Skills seemingly

overnight: “Adaptability” is Increasingly in Demand

12

Page 13: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Work presents an opportunity to accumulate human capital,

but returns to work vary considerably

6 November 2019 13

Mean(France):

4.0

Mean(Gabon):

2.1Mean

(Moldova):1.8

Mean(Liberia):

2.5

Sweden: 5.5

Brazil: 2.8Kenya: 3.0

Tanzania: 3.6

Lithuania: 2.1

Kazakhstan: 1.3

Kyrgyz Republic: -1.4

Afghanistan: 0.3

Uruguay: 3.0

Bulgaria: 1.8

Armenia: 0.8

Malawi: 1.6

Germany: 4.3

South Africa: 2.4 Cameroon: 2.5

Ethiopia: 2.9

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Wag

eIn

cre

ase

(%

) fo

r an

Ad

dit

ion

al Y

ear

of

Exp

eri

en

ce

High Income Upper-middle Income Lower-middle Income Low Income

Page 14: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

QUIZ

6 November 2019 14

Page 15: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

What can governments do?

6 November 2019 15

Page 16: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Three Areas For Policy Action:

16

Human Capital and Lifelong Learning

Social Protection and Labor Policies

Revenue Mobilization

Page 17: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Governments have a

vital role to play in

building human capital

17

The Human Capital Index 2018China 0.67

Egypt 0.49

Nigeria 0.34

Singapore 0.88

Malawi 0.41

Page 18: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

The first 1,000 days lay a lifelong foundation

18

Page 19: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

The changing nature of work makes tertiary

education more attractive in three ways

1) Skills2) Lifelong learning3) Innovation

Page 20: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Human Capital and Lifelong Learning

Social Protection and Labor Policies

Revenue Mobilization

Three Areas For Policy Action:

20

Page 21: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Convergence in the nature of work?

21

This Photo by Unknown Author is licensed under CC BY-NC-ND

Page 22: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Coverage of social insurance remains low in most developing

countries

-100

-80

-60

-40

-20

0

20

40

60

80

100

0

10

20

30

40

50

60

70

80

90

100

TUN BRA TUR CHL EGY ARG MOR COL MEX ECU PHI SRI ELS NIC PER GUA HON CAM CDI BOL INS ZAM IND GHA MLI MAD RWA TAN PAK BDI CHA BAN NIG

Per

cen

tage

po

ints

dif

fere

nce

, 1

99

0s-

20

10

s

Co

vera

ge r

ate

(20

10

s)

Coverage in 2010s (left axis) Change in coverage 1990s-2010s, percentage points difference (right axis)

Page 23: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Social protection and labor regulation can manage labor market

challenges

Labor market regulation

Social insurance (mandatory and

voluntary)

- Inclusive social minimum delinked

from employment + layers of

insurance

- More flexibility, but with robust

social protection systems in place

Guaranteed social

minimum

Page 24: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Aspiring to flexicurity…

ALB

ARM

AUT

AZE

BLR

BEL

BGR

HRV

CYPCZE

DNK

EST

FINFRA

GEO

DEU

GRCHUN

ISL

IRLITA

KAZ

KGZ

LVA LTU

MDA

NLD

NOR

POL

PRT

RUSSMR

SRB

-3

-2

-1

0

1

2

3

0.00 0.20 0.40 0.60 0.80 1.00 1.20

Pro

tect

ion

ind

ex

Flexibility index

Low

Low

High

High

Low flexibilityHigh protection

High flexibilityLow protection

High flexibilityHigh protection

Low flexibilityLow protection

Page 25: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Three Areas For Policy Action:

25

Human Capital and Lifelong Learning

Social Protection and Labor Policies

Revenue Mobilization

Page 26: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Social inclusion is costly

26

0

5

10

15

20

25

% o

f G

DP

Social Assistance Package (as exemplified by UBI) Young Adults Package (productive inclusion) Human Capital Package

Lower Middle-Income Countries Upper Middle-Income CountriesLow Income Countries

Page 27: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Tax revenues have to rise, especially in developing economies

27

Page 28: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Some countries spend more on energy subsidies than on social assistance

28

Page 29: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

29

http://www.worldbank.org/en/publication/wdr2019

2019 World Development Report

Page 30: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

Appendix

6 November 2019 30

Page 31: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

The Human Capital Index 2018

31

Page 32: The (Un)Changing Nature of Work: What to Expect and ...pubdocs.worldbank.org/en/687201574377981217/SPJCC... · SURVIVAL Children who don’t survive don’t grow up to become future

SURVIVAL

Children who don’t survive

don’t grow up to become future

workers

HUMAN CAPITAL INDEX: calculation

SCHOOL

Contribution of quality-adjusted years of school to productivity

of future workers

HEALTH

Contribution of health (average of adult survival

rate and stunting) to

productivity of future workers

HCI

Productivity of a future worker

(relative to benchmark of

complete education and

full health)

x =x